Answer: $20,000
Explanation:
The reserve requirement is a central bank regulation which sets minimum amount of reserves which must be held by a commercial bank.
When reserve requirement = 20%
= 20/100
= 0.20
Total increase in the checkable deposit will be = $4,000 / 0.20= $20,000
Answer:
Presence or threat of trade barriers
Explanation:
If a company sees that a specific country has a presence or threat of trade barriers, the company will prefer to invest directly in foreign companies, instead of exporting.
This is because trade barriers, like tariffs or import quotas, will likely reduce the potential revenue that the company would get from exporting. It could reduce revenue so much as to make the company lose money.
Managers often use a(n) utilitarian approach when making organizational decisions - using financial performance such as profit as the best definition of what constitutes an ethical choice for the company.
<u>Explanation:</u>
When decisions are taken by taking benefits and the costs that are associated with stakeholders into consideration is an utilitarian approach. The main thing that is considered in this approach for taking any decision is consideration of the outcome and net result of the action that is to be taken.
It aims in taking an action that has greater good for many number of people and less harm for lesser number of people. It considers both the people who gets benefits and those people who suffer from the decision. It mainly focus on choosing an alternate that is more ethical and produces a good balancing of benefits than harm.
Answer:
B, Indirect incentive
Explanation:
An incentive is anything that motivates an individual to behave in a certain way. An incentive could range from money to many other things and it is the reason why an individual acts in a certain way.
For example, salary and bonuses are incentives for workers. This makes the worker work better and harder and more efficiently because he/she knows that there is something to encourage him for doing his/her work diligently.
Incentive can be direct or indirect as in the case of the above question.
In the case of the above question, a generous disability insurance can motivate workers to falsely claim to be disabled. This means that the financial implication of the insurance package for disability is most likely the only reason for workers to claim false disability.
Cheers.
In case fictitious revenues are recorded asset turnover ratio will increase.
The asset turnover ratio measures the performance of an organization's assets in producing revenue or income. It compares the dollar quantity of income (revenues) to its overall belongings as an annualized percent. hence, to calculate the asset turnover ratio, divide net income or revenue by the average total belongings.
Fictitious revenues contain the sale of goods or services that no longer arise. Fictitious invoices may be fake, but can also contain valid clients. A fictitious invoice may be prepared for a legitimate patron despite the fact that goods are not added or services have no longer been rendered.
Accounting ratios, an important subset of monetary ratios, are a group of metrics used to degree the performance and profitability of an employer based on its financial reports. They provide a way of expressing the relationship between one accounting information factor to any other and are the basis of ratio evaluation.
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